Axis Bank Car Loan Interest Rates
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Axis Bank Car Loan Interest Rates

Team CARS24
editor

If you wish to buy a new car, you can simply head to the nearest branch of Axis Bank, the third-largest private bank in the country, to opt for a finance scheme. At Axis Bank, the interest rates for new car loan interest start as low as 8.80 percent per annum, and you can get a car loan for a maximum loan tenure of 7 years. Also, the benefit of applying for a car loan from Axis Bank is that it requires less paperwork, and there’s even a quick disbursement of the loan.

FeaturesNew Car Loan SchemeUsed Car Loan Scheme
Interest Rates 8.80% p.a. onwards9.30% p.a. onwards
Loan Tenure Up to a period of 7 yearsMaximum of 5 years 
Processing Fee The car loan processing fee in Axis Bank is 1% of the loan amount or Rs 6,000 (whichever is lower) The car loan processing fee in Axis Bank is 1% of the loan amount or Rs 6,000 (whichever is lower) 
Loan Amount Up to 100% of the car’s on-road price 

Axis Bank Car Loan Interest Rate

Like car loan options provided by other banks, the car loan interest rate at Axis Bank depends on below factors –

 Factors Determining Axis Bank Car Loan Interest Rate
Loan amountAxis Bank will offer a new car loan at a relatively lower interest rate if the borrowed sum is higher. Also, you should note that Axis Bank provides finance of up to 100 per cent of the on-road price of the vehicle. 
Your SalaryIn case your salary is high, getting a car loan at a relatively lower rate is possible, Therefore, the Axis Bank fixes the new car loan interest rate as per the net monthly income of the borrower.
Employer Category The borrower’s employer category plays a huge role in deciding the Axis Bank car loan interest rate. Those working in companies recognized by the Axis Bank tend to get new car loans at a relatively lower interest rate.
Relationship with the BankYou can benefit from a special rate of interest for Axis Bank new car loan in case you are an existing account holder of the Axis bank and enjoy a good reputation in the eyes of the banker.
Loan Tenure Axis Bank offers a loan tenure of up to 7 years.
Repayment CapacityThe Axis Bank car loan interest rate is also decided as per the repayment capacity of the buyer, which is adjudged through the CIBIL score.

Axis Bank Car Loan Eligibility Criteria

Given below is a table that provides complete information on the eligibility criteria for getting Axis Bank car loan.

Eligibility CriteriaEligibility Details
Age18 years – 60 years at age of maturity
Minimum Annual IncomeSalaried: Rs 2.40 Lakhs 
Self Employed Professionals: Rs 1.8 Lakhs 
Self Employed Businessmen: Rs 1.8 Lakhs 
Minimum Credit Score700 and above
Loan Tenure7 years
Loan to Value RatioUp to 100% of on-road price

There are many factors that affect the eligibility to get an Axis Bank car loan. These include –

  • Age: Axis Bank offers car loan a wide age group, ranging from 18 years to 60 years at the time of the maturity of the loan.
  • Income: Another factor that helps Axis Bank decide new car loan eligibility is the income. The third-largest private bank in the country provides car loan to salaried professionals who have an annual income of Rs 2.40 lakh and self-employed professionals and businesses that have an annual income of Rs 1.80 lakh.
  • Job stability and Profession: Profession and job stability is another important factor that helps the bank decide if the loan applicant is eligible or not. Therefore, professionals of a reputed company and have a good job profile are likely to get a higher amount as car loan at a lower rate of interest.
  • CIBIL Score: The CIBIL score, which is, basically, your past repayment record, influences the rate of interest at which you get a new car loan from Axis Bank. Higher your CIBIL score, the lower rate of interest you enjoy. The vice versa also holds true.
  • Loan Amount: The Axis Bank car loan amount is decided based on your income. It must be noted here that Axis Bank offers up to 100% finance on the on-road price of the vehicle.

Axis Bank Car Loan EMI Calculator

Basically, the Axis Bank Car Loan EMI is the fixed amount that you have to pay to the bank on a pre-decided date every month in order to repay your loan. Currently, the lowest EMI per Rs 2 lakh offered by Axis Bank is Rs 4,477. The Axis Bank car loan EMI is based on the below factors –

 Factors Determining EMI
Rate of interest Higher the rate of interest at which you get the Axis Bank car loan, higher will be the EMI you will have to pay every month.
Loan tenureThe EMI is inversely proportioned to your loan tenure.
Loan AmountAnother factor that influences your Axis Bank Car Loan EMI is the loan amount. Higher the loan amount, higher will be the EMI.

After deciding the new car loan amount and after getting to know Axis Bank car loan interest rate, you can simply calculate your EMI on the basis of the loan tenure using the free Axis Bank car loan EMI Calculator. It’s fairly simple to use an EMI calculator. One just has to fill in the loan amount, the rate of interest and the loan tenure and he is immediately told the EMI that he or she needs to pay. The EMI calculator works on the below equation –

E= P. r. (1+r)n/[(1+r) n -1]

Where,

P is the principal amount (loan amount)

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the tenure of loan in months

E represents the monthly payment or EMI

For example, in case you take a loan of Rs 7 lakh for a tenure of 5 years at a rate of interest of 9.25 per cent, you will have to pay an EMI of Rs. 14,616 for 5 years.

Axis Bank Auto Loan Fee and Charges

 Axis Bank Car Loan Fee and Charges
Foreclosure Charges One needs to pay a foreclosure charge, calculated at 5% of the outstanding principal amount, in case you wish to pay back your car loan amount ahead of the end of the tenure.
Processing Fee Axis Bank asks for a processing fee of 1% of the loan amount or Rs. 6,000, whichever is lower.

How can I Transfer my Axis Bank Car Loan Balance?

Axis Bank allows you to transfer car loan balance from another bank. However, this depends on your eligibility and hence, you need to visit the nearest branch of Axis Bank and talk about this to the officer handling the car loan department. Once you meet him, you need to divulge the details and initiate the paperwork for transferring the car loan balance in case you are eligible.

How can I topup my Axis Ban Car Loan?

Other than allowing you to transferring your car loan balance, you can also top up the car loan in case you are eligible. Even for this, you’ll need to visit the nearest branch of Axis Bank and talk about this to the officer handling the car loan department. Once you meet him, you need to divulge the details and initiate the paperwork for the top-up of the car loan balance in case you are eligible.

Documents required for Axis Bank Car Loan

Types of EmployeeDocuments
Salaried EmployeesFilled up loan application form2 Passport Size PhotoCopy of Income Tax PAN, Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN/Quotation of car/Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car
Self-Employed Filled up loan application form2 Passport Size PhotoCopy of Income Tax PANIdentity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PANQuotation of carResidential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car

Factors Affecting Axis Bank Car Loan Interest Rates

The Axis Bank car loan interest rate stays the same throughout the loan tenure. However, the interest rate of the loan is based on a lot of factors. The Axis Bank car loan interest rates for both new and used car loans range from 8.8% per annum to 11.20% per annum. The interest rate at which you get the car loan is based on the below factors:

 Factors Determining Axis Bank Car Loan Interest Rate
Loan amountAxis Bank will offer a new car loan at a relatively lower interest rate if the borrowed sum is higher. Also, you should note that Axis Bank provides finance of up to 100 per cent of the on-road price of the vehicle. 
Your SalaryIn case your salary is high, getting a car loan at a relatively lower rate is possible, Therefore, the Axis Bank fixes the new car loan interest rate as per the net monthly income of the borrower.
Employer Category The borrower’s employer category plays a huge role in deciding the Axis Bank car loan interest rate. Those working in companies recognized by the Axis Bank tend to get new car loans at a relatively lower interest rate.
Relationship with the BankYou can benefit from a special rate of interest for Axis Bank new car loan in case you are an existing account holder of the Axis bank and enjoy a good reputation in the eyes of the banker.
Loan Tenure Axis Bank offers a loan tenure of up to 7 years.
Repayment CapacityThe Axis Bank car loan interest rate is also decided as per the repayment capacity of the buyer, which is adjudged through the CIBIL score.

FAQs

Q: What is car loan interest rate offered by Axis Bank ?

A: The lowest Axis Bank car loan interest rate is 8.80 per cent and the highest is 11.20 per cent.

Q: What is the lowest EMI per lakh on Axis Bank car loan?

A: The lowest EMI per lakh on Axis Bank car loan is Rs 1,622.

Q: What is the maximum tenure of Axis Bank car loan?

A: You can opt for an Axis Bank car loan for a maximum tenure of 7 years.

Q: How much processing fee is charged by Axis Bank on car loan?

A: Axis Bank asks for a processing fee of 1% of the loan amount or Rs. 6,000, whichever is lower.

Q: How much car loan I can borrow from Axis Bank?

A: Axis Bank provides finance of up to 100 per cent of the on-road price of the vehicle.

Q: Is age an eligibility factor to get car loan from Axis Bank?

A: Axis Bank offers car loan a wide age group, ranging from 18 years to 60 years at the time of the maturity of the loan.

Q: Are there any prepayment charges on Axis Bank car loan?

A: One needs to pay a foreclosure charge, calculated at 5% of the outstanding principal amount, in case you wish to pay back your car loan amount ahead of the end of the tenure.

Q: Can I add my spouse’s income while applying for car loan from Axis Bank?

A: You can add your spouse as co-applicant when applying for Axis Bank car loan as it will increase your car loan eligibility

Q: What are the income criteria of Axis Bank Car Loan Scheme?

A: The net income of the applicant/co-applicant on a yearly basis should be at least Rs.2 lakh for salaried individuals and Rs 1.80 lakh for self-employed.

Q: What documents are salaried professionals required to submit along with the car loan application form?

A: Salaried professionals should submit the following documents along with Axis Bank Car Loan application form:
– Account statement for the preceding six months.
– Two passport size photographs.
– Identity proof
– Proof of residence
– Proof of income which can include Form 16 or latest payslips.
– Income Tax Returns for the preceding two years.

Q: What are the elements included in ‘on-road price’?

A: On-road price includes –
– Registration
– Insurance and extended warranty
– Cost of accessories
– Annual maintenance contract

Q: Is there an insurance cover that I can purchase alongside Axis Bank Car Loan?

A: Yes, an optional fife insurance cover can be bought by car loan applicant.